As an associate in a large brokerage, I am wondering what the average buyer / risk manager / treasurer / CFO etc has to say about their broker taking contingency payments from your carrier.
Is this a conflict of interest?
Does this issue impact your decision-making process?
Does additional indirect compensation (i.e., indirectly coming out of your rates) reduce your costs or brokerage fee agreements?
In advance – thank you for participating. I have always wondered what the buyer’s comments were.
The taking of contingency payments is absolutely a conflict of interest.
Your broker will not tell you that they may be close to reaching the threshold (or next level) for the contingency payment with a certain company, but will offer it to you as the best choice so that they meet the production number.
There is no way to take out the conflict of interest from the contingency paymet issue.
Mikey – they already are – and have been, but their name isn’t blasted on comment boards like Aon’s is. Willis has been taking contingent commissions……. don’t let anyone fool you. It’s like how Arizona is all over the news about being an English speaking state…. well Missouri passed all the same kinds of laws over a year ago and no one said anything (or blasted Missouri) – they just went and did what they felt they wanted to pass through their legislature. I don’t know why some companies or states are in the spotlight and some do the same thing and no one notices……. go fig
No buyer cares enough about contingencies to comment! Complacency wins!
I guess all the brokers should start collecting contingencies again, instead of taking the high moral ground, and pay bonuses, raises, reinstate 401k contributions etc.
Why pass up a chunk of cash going to the bottom line if there isn’t a corporate consumer backlash?
I bet they start accepting contingents in two years or less.
As an associate in a large brokerage, I am wondering what the average buyer / risk manager / treasurer / CFO etc has to say about their broker taking contingency payments from your carrier.
Is this a conflict of interest?
Does this issue impact your decision-making process?
Does additional indirect compensation (i.e., indirectly coming out of your rates) reduce your costs or brokerage fee agreements?
In advance – thank you for participating. I have always wondered what the buyer’s comments were.
The taking of contingency payments is absolutely a conflict of interest.
Your broker will not tell you that they may be close to reaching the threshold (or next level) for the contingency payment with a certain company, but will offer it to you as the best choice so that they meet the production number.
There is no way to take out the conflict of interest from the contingency paymet issue.
Mikey – they already are – and have been, but their name isn’t blasted on comment boards like Aon’s is. Willis has been taking contingent commissions……. don’t let anyone fool you. It’s like how Arizona is all over the news about being an English speaking state…. well Missouri passed all the same kinds of laws over a year ago and no one said anything (or blasted Missouri) – they just went and did what they felt they wanted to pass through their legislature. I don’t know why some companies or states are in the spotlight and some do the same thing and no one notices……. go fig
No buyer cares enough about contingencies to comment! Complacency wins!
I guess all the brokers should start collecting contingencies again, instead of taking the high moral ground, and pay bonuses, raises, reinstate 401k contributions etc.
Why pass up a chunk of cash going to the bottom line if there isn’t a corporate consumer backlash?